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Nationalisation of banks would undermine what little confidence left in economy‚ banks warn

07 November 2017 – 18:58BY TIMESLIVE

Nationalisation of the country’s banks would seriously undermine what fragile levels of confidence remain in the economy and society‚ the Banking Association of South Africa cautioned on Tuesday.

The body described the debate in parliament as “alarming”‚ saying it was critical that the Treasury move quickly and publicly to provide absolute certainty on its policy position in this regard.

“Any nationalisation of banks will have a direct impact on stability‚ and will seriously undermine what fragile levels of confidence remain in our economy and society. We cannot allow ourselves to be in a position where we are further undermining the competitive positions that remain because of political expedience.

“It is critical that Treasury move quickly and publicly to provide absolute certainty on its policy position in this regard. It is incumbent on all of government to be unequivocal in its position that the financial sector is critical to the economy‚” said BASA MD cas Coovadia.

He said that at a time when Finance Minister Malusi Gigaba had declared a commitment to rebuild confidence in the country’s economy and its institutions‚ and to foster policy certainty‚ “we cannot afford to entertain thoughts of nationalising our banking system”.

“South African banks are globally recognised as being well managed‚ operated and regulated. Banks play a critical role in our society and any attempt to jeopardise this is must be resisted.

“BASA remains willing to engage any party on the role banks play‚” Coovadia added.